Shares


Shares

When you buy shares in a company, you are buying a part of that company. This means you share in the company's performance in the form of profits which can be given to you as dividends and/or capital growth through the value of your shares increasing. Companies generally list on the stock exchange to raise capital for their company and to create a market in their shares.

Companies you invest in benefit by using your money and that of other investors to finance their business or its expansion, without having to borrow money. Capital growth occurs when the value of your investment increases. People generally invest in shares because they offer the possibility that their price will rise.

For Australian investors, dividends are often worth more than the cash payment they receive. This is because where companies have already paid tax on their profits, tax credits known as franking credits may be attached to the dividends the company pays to you. These franking credits can be used to offset tax payable by you on other income.

In addition, shares held for more than 12 months qualify for a 50% discount on any capital gains tax payable. Investing in shares gives you flexibility. You can buy and sell shares quickly. You can sell shares and generally have access to your money in no more than three days. Other investments often take longer to sell and get your money back. This concept is known as liquidity.

At Stevens Roberts we can tailor a share portfolio for you based on your risk preferences, personal preferences and your investment horizon. We can also provide services associated with your portfolio including:

Either quarterly or weekly changes (depends on level of service) - this means that we can alter your portfolio in the case of changes in the economy/market, changes in legislation, changes in the company you hold shares in or changes in your personal preferences.

Research - we liaise with specialist research professionals who undertake detailed analysis of not only the economy and market as a whole but also down to individual companies to provide you with an outstanding service that will suit your situation.

Stock selection strategies - to maximise your diversification at minimal costs and to provide an efficient vehicle for you to get in and out of specific market segments.

Administration - Stevens Roberts will take care of all of the administrative duties involved with the buying and selling of shares in your portfolio.

For more information on our investment services please click here.